An operating lease is a lease agreement that transfers the risks and benefits associated with ownership to the lessee.

Question

Quizplus · Accepted Answer

An operating lease does not transfer the risks and benefits associated with ownership to the lessee. Instead, the lessor (owner) retains ownership and the lessee (user) has the right to use the asset for a specific period of time while making regular payments. The risks and benefits of ownership remain with the lessor.

An Operating Lease Is a Lease Agreement That Transfers the Risks